Q2 2024 Siyata Mobile Inc Earnings Call

August 16, 2024

Speaker Change: Good morning, ladies and gentlemen, and welcome to the CYATA Mobile Q2 2024 conference call. At this time, all participants are in a listen-only mode.

Operator: 2024 conference call. At this time, all participants are in a listen-only mode.

Unknown Attendee: 2024 conference call. At this time, all participants are in a listen-only mode. This call is being recorded on Friday, August 16, 2024.

Glenn Kennedy: This call is being recorded on Friday, August 16, 2024. I would now like to turn the conference over to Glenn Kennedy, Vice President of International, Please go ahead. Thank you for joining the Siyata Mobile second quarter 2024 conference call. Today I'm joined by our CEO, Marc Seelenfreund. During this call, management will make express and implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S. federal securities laws.

Speaker Change: This call is being recorded on Friday, August 16, 2024. I would now like to turn the conference over to Glenn Kennedy, Vice President of International Sales. Please go ahead.

Glenn Kennedy: I would now like to turn the conference over to Glenn Kennedy, Vice President of International Sales. Please go ahead.

Glenn Kennedy: Thank you for joining the Siyata Mobile's second quarter 2024 conference call. Today I'm joined by our CEO, Marc Seelenfreund. During this call, management will make express and implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S. Federal securities laws. These forward-looking statements include, but are not limited to, those statements regarding future product offerings, the belief that we are on the path for strong organic growth, the goal to deliver strong year-over-year revenue growth and reach profitability in the coming quarters, the belief that we will continue to see strong sales in all of our product lines and across our various markets, and the timing and sale of our rugged handsets to North America and international carriers.

Glenn Kennedy: These forward-looking statements include, but are not limited to, those statements regarding future product offerings, the belief that we are on the path for strong organic growth, the goal to deliver strong year-over-year revenue growth and reach profitability in the coming quarters, the belief that we will continue to see strong sales in all of our product lines and across our various markets, and the timing and sale of our rugged handsets to North America and international carriers. Such forward-looking statements are based on the company's current expectations and assumptions regarding its business, the economy, and other future conditions.

Speaker Change: Thank you for joining the CYATA Mobile second quarter 2024 conference call. Today, I'm joined by our CEO, Marc Seelenfreund.

Glenn Kennedy: Because forward-looking statements relate to the future, they are not statements of historical fact and are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. The company's actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements.

Speaker Change: During this call, management will make express and implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S. federal securities laws.

Glenn Kennedy: The company cannot guarantee future results, levels of activity, performance, or achievement. The forward-looking statements contained in this presentation are subject to other risks and uncertainties, including those discussed in the Risk Factors section and elsewhere, in the company's annual report on Form 20-F for the year ended December 31, 2023, filed with the Securities and Exchange Commission. Now I'd like to turn the call over. Thank you, Glenn.

Speaker Change: These forward-looking statements include, but are not limited to, those statements regarding future product offerings, the belief that we are on the path for strong organic growth,

Speaker Change: The goal to deliver strong year-over-year revenue growth and reach profitability in the coming quarters.

Speaker Change: The belief that we will continue to see strong sales in all of our product lines and across our various markets.

Speaker Change: and the timing and sale of our rugged handsets to North America and international carriers. Such forward-looking statements are based on the company's current expectations and assumptions regarding its business, the economy, and other future conditions.

Glenn Kennedy: Such forward-looking statements are based on the company's current expectations and assumptions regarding its business, the economy, and other future conditions. Because forward-looking statements relate to the future, they are not statements of historical fact and are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. The company's actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. The company cannot guarantee future results, levels of activity, performance, or achievements. The forward-looking statements contained in this presentation are subject to other risks and uncertainties, including those discussed in the Risk Factor section and elsewhere.

Speaker Change: Because forward-looking statements relate to the future, they are not statements of historical fact and are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict.

Speaker Change: The company's actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward-looking statements.

Speaker Change: The company cannot guarantee future results, levels of activity, performance, or achievements.

Speaker Change: The forward-looking statements contained in this presentation are subject to other risks and uncertainties, including those discussed in the Risk Factors section and elsewhere.

Glenn Kennedy: In the company's annual report on Form 20-F for the year-end in December 31st, 2023, filed with the Securities and Exchange Commission.

Speaker Change: in the company's annual report on Form 20-F for the year ended December 31st, 2023, filed with the Securities and Exchange Commission. Now I'd like to turn the call over to Marc.

Marc Seelenfreund: Now, I'd like to turn the call over to Mark. Thank you, Glenn. Good morning, and thank you for joining the call. In the second quarter of 2024 ended June 30th, revenue was $1.9 million, which is the $800,000 decrease compared to $2.7 million in Q2 2023. This decrease was primarily due to working capital constraints, which we believe was a short-term challenge that we addressed with our recent capital raises. Demand from our wireless carriers and distributors remains strong. Have we currently have an order backlog of over $7 million, giving us strong visibility into the third and fourth quarters?

Marc Seelenfreund: Good morning, and thank you for joining the call. In the second quarter of 2024 and to June 30th, revenue was $1.9 million, which is an $800,000 decrease compared to $2.7 million in Q2 2023. This decrease was primarily due to working capital constraints, which we believe was a short-term challenge that we addressed with our recent capital raises. Demand from our wireless carriers and distributors remains strong and we currently have an order backlog of over $7 million, giving us strong visibility into the third and fourth quarters.

Marc: Thank you, Glenn. Good morning, and thank you for joining the call.

Marc: In the second quarter of 2024 and to June 30th, revenue was $1.9 million, which is an $800,000 decrease compared to $2.7 million in Q2 2023.

Speaker Change: This decrease was primarily due to working capital constraints, which we believe was a short-term challenge that we addressed with our recent capital raises.

Speaker Change: Demand from our wireless carriers and distributors remains strong, and we currently have an order backlog of over seven million dollars, giving us strong visibility into the third and fourth quarters.

Marc Seelenfreund: We expect revenue in Q3 2024 will be significantly higher than Q2 2024 revenue, and our goal for 2024 revenue is to have high double-digit growth. As we scale our business aggressively, our order backlog may likely be inconsistent and perhaps lumpy at times due to the purchasing behavior of our customers. Therefore, we do not intend to disclose our backlog quarter to quarter. Having said that, we are extremely excited with our sales for the remaining half of 2024, as we are now seeing tangible, rapid adoption of our unique PTT product portfolio across our various sales channels. With our North American wireless carrier partners, we are currently in a SD7 stock position with AT&T, Verizon, U.S.

Marc Seelenfreund: We expect revenue in Q3 2024 will be significantly higher than Q2 2024 revenue. And our goal for 2024 revenue is to have high double-digit growth. As we scale our business aggressively, our order backlog may likely be inconsistent and perhaps lumpy at times due to the purchasing behavior of our customers. Therefore, we do not intend to disclose our backlog quarter to quarter.

Speaker Change: We expect revenue in Q3 2024 will be significantly higher than Q2 2024 revenue and our goal for 2024 revenue is to have high double-digit growth.

Speaker Change: As we scale our business aggressively, our order backlog may likely be inconsistent and perhaps lumpy at times due to the purchasing behavior of our customers.

Speaker Change: Therefore, we do not intend to disclose our backlog quarter to quarter. Having said that, we are extremely excited with our sales for the remaining half of 2024, as we are now seeing tangible, rapid adoption of our unique PTT product portfolio across our various sales channels.

Marc Seelenfreund: Having said that, we are extremely excited with our sales for the remaining half of 2024 as we are now seeing tangible rapid adoption of our unique PTT product portfolio across our various sales channels. With our North American wireless carrier partners, we are currently in a SD7 stock position with AT&T, Verizon, U.S. Cellular, and Ville Mobility in Canada. And we also continue to sell in a non-stock position at T-Mobile. Just as important, our sales reach beyond emergency services to include school safety, healthcare, utilities, hospitality, and enterprise use cases, among others.

Speaker Change: With our North American wireless carrier partners, we are currently in a SD7 stock position with AT&T, Verizon, U.S. Cellular, and Bell Mobility in Canada. And we also continue to sell in a non-stock position at T-Mobile.

Marc Seelenfreund: cellular, and Bill Mobility in Canada. And we also continue to sell in a non-stock position at T-Mobile. Just as important, our sales reach beyond emergency services to include school safety, healthcare, utilities, hospitality, and enterprise use cases, among others. Therefore, we remain optimistic that 2024 will be a strong sales growth year for Siyata compared to 2023.

Speaker Change: Just as important, our sales reach beyond emergency services to include school safety, healthcare, utilities, hospitality, and enterprise use cases, among others. Therefore, we remain optimistic that 2024 will be a strong sales growth year for SCIATA compared to 2023.

Marc Seelenfreund: Therefore, we remain optimistic that 2024 will be a strong sales growth year for Siyata compared to 2023. For the remaining Q2 2024 financial metrics, gross margin percentage for Q2 2024 was 10.4% versus 29.7% in Q2 2023. Gross margin dollars decreased from $800,000 to $200,000, a $600,000 negative variance.

Marc Seelenfreund: For the remaining Q2-2024 financial metrics, gross margin percentage for Q2-2024 was 10.4% versus 29.7% in Q2-2023. Gross margin dollars decreased from $800,000 to $200,000, a $600,000 negative variance. The decrease in gross margin was primarily due to one time heavily discounted transaction with an international reseller, which we believe will help our revenue in the second half of 2024. S-GNA expenses are $4 million in Q2-2024 versus $2.7 million in Q2-2023, an increase of $1.3 million. This increase in S-GNA was primarily due to marketing expenses related to investor awareness. Adjusted EBITDA for Q2-2024 was negative $3.8 million compared to negative $2 million in Q2-2023, a $1.8 million negative variance in EBITDA.

Speaker Change: For the remaining Q2 2024 financial metrics, gross margin percentage for Q2 2024 was 10.4% versus 29.7% in Q2 2023.

Speaker Change: Gross margin dollars decreased from $800,000 to $200,000, a $600,000 negative variance.

Marc Seelenfreund: The decrease in gross margin was primarily due to one time heavily discounted transaction with an international reseller, which we believe will help our revenue in the second half of 2024. SG&A expenses are $4 million in Q2 2024 versus $2.7 million in Q2 2023, an increase of $1.3 million. This increase in SG&A was primarily due to marketing expenses related to investor awareness.

Speaker Change: The decrease in gross margin was primarily due to one-time heavily discounted transaction with an international reseller Which we believe will help our revenue in the second half of 2024

Speaker Change: SG&A expenses are $4 million in Q2 2024 versus $2.7 million in Q2 2023, an increase of $1.3 million. This increase in SG&A was primarily due to marketing expenses related to investor awareness.

Marc Seelenfreund: Adjusted EBITDA for Q2 2024 was negative $3.8 million compared to negative $2 million in Q2 2023, a $1.8 million negative variance in EBITDA. Working capital as of June 30, 2024 was negative $8.3 million versus $1.3 million as of December 31, 2023, a $7 million decrease in working capital. Removing both the non-cash warrant and preferred share liabilities classified as current liabilities, the working capital at June 30, 2024 would have been $2.5 million and at December 31, 2024 would have been $1.5 million.

Speaker Change: Adjusted EBITDA for Q2 2024 was negative $3.8 million compared to negative $2 million in Q2 2023, a $1.8 million negative variance in EBITDA.

Marc Seelenfreund: Working capital as of June 30, 2024, was negative $8.3 million versus $1.3 million as of December 31, 2023, a $7 million decrease in working capital. Removing both the non-cash warrant and preferred share liabilities classified as current liabilities, the working capital of June 30, 2024, would have been $2.5 million, and at December 31, 2024, would have been $1.5 million. For the six months ended June 30, 2024, total revenue was $4.2 million compared to $4.5 million in the same period of 2023, which is a negative variance of $300,000. Gross margin dollars were $1.1 million in 2024 compared to $1.3 million in the same period of 2023, which is a negative variance of $200,000.

Speaker Change: Working capital as of June 30, 2024 was negative $8.3 million versus $1.3 million as of December 31, 2023, a $7 million decrease in working capital.

Speaker Change: Removing both the non-cash warrant and preferred share liabilities classified as current liabilities, the working capital at June 30, 2024, would have been $2.5 million, and at December 31, 2024, would have been $1.5 million.

Marc Seelenfreund: For the six months ended June 30, 2024, total revenue was $4.2 million compared to $4.5 million in the same period of 2023, which is a negative variance of $300,000. Gross margin dollars were $1.1 million in 2024, compared to $1.3 million in the same period of 2023, which is a negative variance of $200,000. The decreased gross margin was again primarily due to a one-time heavily discounted transaction that was sold internationally to a reseller, which we believe will help our revenue in the second half of 2024. Finally, the gross margin percentage was 25% in 2024, compared to 28.8% in the same period of 2023, a decrease of 3.8%.

Speaker Change: For the six months ended June 30, 2024, total revenue was $4.2 million compared to $4.5 million in the same period of 2023, which is a negative variance of $300,000.

Speaker Change: Gross margin dollars were 1.1 million dollars in 2024 compared to 1.3 million dollars in the same period of 2023 which is a negative variance of $200,000.

Marc Seelenfreund: The decreased gross margin was again primarily due to a one-time heavily discounted transaction that was sold internationally to a reseller, which we believe will help our revenue in the second half of 2024. Finally, the gross margin percentage was 25% in 2024 compared to 28.8% in the same period of 2023, a decrease of 3.8%.

Speaker Change: The decreased gross margin was again primarily due to a one-time, heavily discounted transaction that was sold internationally to a reseller, which we believe will help our revenue in the second half of 2024.

Speaker Change: Finally, the gross margin percentage was 25% in 2024 compared to 28.8% in the same period of 2023, a decrease of 3.8%.

Marc Seelenfreund: Turning to significant business highlights, we are pleased to report that, in addition to our strong backlog and our improved stock positions, with four North American carriers, we now have our ST7 hands that integrated with another leading global push-to-talk application called ZELLO, and we expect more applications to be announced in the future. This integration has already led to meaningful sales, with multiple new sales opportunities in the works. Also of note, we are in discussions with our business partners about new product launches, which we expect to announce in the coming months and will have a significant positive impact in our revenue in 2025 and beyond.

Marc Seelenfreund: Turning to significant business highlights, we are pleased to report that in addition to our strong backlog and our improved stock positions with four North American carriers, we now have our SD7 handset integrated with another leading global push-to-talk application called Zello, and we expect more applications to be announced in the future. This integration has already led to meaningful sales with multiple new sales opportunities in the works. Also of note, we are in discussions with our business partners about new product launches, which we expect to announce in the coming months and will have a significant positive impact in our revenue in 2025 and beyond.

Speaker Change: Turning to significant business highlights, we are pleased to report that in addition to our strong backlog and our improved stock positions with four North American carriers, we now have our SD7 handset integrated with another leading global push-to-talk application called Zello, and we expect more applications to be announced in the future.

Speaker Change: This integration has already led to meaningful sales with multiple new sales opportunities in the works.

Speaker Change: Also of note, we are in discussions with our business partners about new product launches, which we expect to announce in the coming months and will have a significant positive impact in our revenue in 2025 and beyond.

Marc Seelenfreund: We recently expanded our sales team with the hiring of Boba Scale as our VP of Public Safety. Bob previously served as the director of product development at Samson's Mission Critical, Push-to-Talk team. In the brief time that Bob has been at Siyata, he has already helped us to sharpen our product strategy and develop new sales opportunities. We are excited to have a person of his caliber on our team. We are just beginning to see the rapid adoption of our disruptive solutions, and as a displacement of land mobile radio by Push to Talk of a Cellular continues to progress, this should drive meaningful growth for our innovative products.

Marc Seelenfreund: We recently expanded our sales team with the hiring of Baba Scale as our VP of Public Safety. Bob previously served as the Director of Product Development at Samsung's mission-critical Push-to-Talk team. In the brief time that Bob has been at Siyata, he has already helped us to sharpen our product strategy and develop new sales opportunities. We are excited to have a person of his caliber on our team.

Speaker Change: We recently expanded our sales team with the hiring of Bob Iscale as our VP of Public Safety.

Speaker Change: Bob previously served as the Director of Product Development at Samsung's mission-critical Push-to-Talk team. In the brief time that Bob has been at Syeda, he has already helped us to sharpen our product strategy and develop new sales opportunities. We are excited to have a person of his caliber on our team.

Marc Seelenfreund: We are just beginning to see the rapid adoption of our disruptive solutions, and as the displacement of land mobile radio by push-to-talk over cellular continues to progress, this should drive meaningful growth for our innovative products. We stand by our previously stated goal of strong revenue growth with a goal of profitability in the coming quarters. We will file our second quarter 2024 financial results with the SEC on Form 6K and urge our listeners to access them from the SEC's website. Search for Siyata Mobile.

Speaker Change: We are just beginning to see the rapid adoption of our disruptive solutions, and as the displacement of land mobile radio by push-to-talk over cellular continues to progress, this should drive meaningful growth for our innovative products.

Marc Seelenfreund: We stand by our previously stated goal of strong radio growth, with the goal of profitability in the coming quarters.

Speaker Change: We stand by our previously stated goal of strong revenue growth with a goal of profitability in the coming quarters. We will file our second quarter 2024 financial results with the SEC on Form 6k and urge our listeners to access them from the SEC's website. Search for Sciata Mobile.

Marc Seelenfreund: We will file our second quarter 2024 financial results with the SEC on Form 6-K and urge our listeners to access them from the SEC's website. Search for Siyata Mobile. That concludes our remarks. If you have any questions, please email them to Syta at haydenir.com. Thank you. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your…

Operator: That concludes our remarks. If you have any questions, please email them to syta at haydenir.com. Thank you. This concludes today's conference and you may disconnect your lines at, Thank you for your participation.

Speaker Change: That concludes our remarks. If you have any questions, please email them to SYTA at HaydenIR.com. Thank you.

Speaker Change: This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.

Unknown Attendee: 2024 conference call. At this time, all participants are in a listen only mode.

Unknown Attendee: 2024 conference call. At this time, all participants are in a listen only mode. This call is being recorded on Friday, August 16, 2024.

Unknown Attendee: This call is being recorded on Friday, August 16, 2024.

Glenn Kennedy: I would now like to turn the conference over to Glenn Kennedy, Vice President of International Sales.

Glenn Kennedy: I would now like to turn the conference over to Glenn Kennedy, Vice President of International Sales. Please go ahead.

Unknown Attendee: Please go ahead.

Glenn Kennedy: Thank you for joining the Siyata Mobile's second quarter 2024 conference call.

Glenn Kennedy: Today I'm joined by our CEO, Marc Seelenfreund. During this call, management will make express and implied forward-looking statements within the Private Security's litigation reform act of 1995 and other U.S, federal securities laws. These forward-looking statements include, but are not limited to those statements regarding future product offerings, the belief that we are on the path for strong organic growth, the goal to deliver strong year-over-year revenue growth and reach profitability in the coming quarters, the belief that we will continue to see strong sales in all of our product lines and across our various markets, and the timing and sale of our rugged handsets to North America and international carriers.

Glenn Kennedy: In the company's annual report on Form 20F for the year-end in December 31st, 2023, filed with the Securities and Exchange Commission.

Glenn Kennedy: Today I'm joined by our CEO, Marc Seelenfreund.

Glenn Kennedy: Now, I'd like to turn the call over to Mark. Thank you, Glenn.

Glenn Kennedy: During this call, management will make express and implied forward-looking statements within the Private Security's litigation reform act of 1995 and other U.S, federal securities laws. These forward-looking statements include, but are not limited to those statements regarding future product offerings, the belief that we are on the path for strong organic growth, the goal to deliver strong year-over-year revenue growth and reach profitability in the coming quarters, the belief that we will continue to see strong sales in all of our product lines and across our various markets, and the timing and sale of our rugged handsets to North America and international carriers.

Marc Seelenfreund: Good morning, and thank you for joining the call. In the second quarter of 2024 ended June 30th, revenue was $1.9 million, which is the $800,000 decrease compared to $2.7 million in Q2 2023. This decrease was primarily due to working capital constraints, which we believe was a short-term challenge that we addressed with our recent capital raises. Demand from our wireless carriers and distributors remains strong. Have we currently have an order backlog of over $7 million, giving us strong visibility into the third and fourth quarters?

Glenn Kennedy: The company's actual results may differ materially from those contemplated by the forward-looking statements.

Glenn Kennedy: We caution you, therefore, against relying on any of these forward-looking statements.

Glenn Kennedy: The company cannot guarantee future results, levels of activity, performance, or achievements. The forward-looking statements contained in this presentation are subject to other risks and uncertainties, including those discussed in the Risk Factor Section and elsewhere. In the company's annual report on Form 20F for the year-end in December 31st, 2023, filed with the Securities and Exchange Commission.

Glenn Kennedy: Now, I'd like to turn the call over to Mark.

Marc Seelenfreund: We expect revenue in Q3 2024 will be significantly higher than Q2 2024 revenue, and our goal for 2024 revenue is to have high double-digit growth. As we scale our business aggressively, our order backlog may likely be inconsistent and perhaps lumpy at times due to the purchasing behavior of our customers. Therefore, we do not intend to disclose our backlog quarter to quarter. Having said that, we are extremely excited with our sales for the remaining half of 2024, as we are now seeing tangible rapid adoption of our unique PTT product portfolio across our various sales channels, with our North American wireless carrier partners, we are currently in a SD7 stock position with AT&T, Verizon, U.S, cellular, and Bill Mobility in Canada. And we also continue to sell in a non-stock position at T-Mobile. Just as important, our sales reach beyond emergency services to include school safety, healthcare, utilities, hospitality, and enterprise use cases among others.

Marc Seelenfreund: Thank you, Glenn.

Marc Seelenfreund: Good morning, and thank you for joining the call.

Marc Seelenfreund: Therefore, we remain optimistic that 2024 will be a strong sales growth year for Siyata compared to 2023. For the remaining Q2-2024 financial metrics, Gross Margin percentage for Q2-2024 was 10.4% versus 29.7% in Q2-2023. Gross margin dollars decreased from $800,000 to $200,000, a $600,000 negative variance. The decrease in Gross margin was primarily due to one time heavily discounted transaction with an international reseller, which we believe will help our revenue in the second half of 2024.

Marc Seelenfreund: In the second quarter of 2024 ended June 30th, revenue was $1.9 million, which is the $800,000 decrease compared to $2.7 million in Q2 2023.

Marc Seelenfreund: S-GNA expenses are $4 million in Q2-2024 versus $2.7 million in Q2-2023, an increase of $1.3 million. This increase in S-GNA was primarily due to marketing expenses related to investor awareness. Adjusted EBITDA for Q2-2024 was negative $3.8 million compared to negative $2 million in Q2-2023, a $1.8 million negative variance in EBITDA. Working capital as a June 30, 2024 was negative $8.3 million versus $1.3 million as a December 31, 2023, a $7 million decrease in working capital.

Marc Seelenfreund: This decrease was primarily due to working capital constraints, which we believe was a short-term challenge that we addressed with our recent capital raises.

Marc Seelenfreund: Removing both the non-cash warrant and preferred share liabilities classified as current liabilities, the working capital of June 30, 2024, would have been $2.5 million and at December 31, 2024 would have been $1.5 million. For the six months ended June 30, 2024, total revenue was $4.2 million compared to $4.5 million in the same period of 2023, which is a negative variance of $300,000. Gross margin dollars were $1.1 million in 2024 compared to $1.3 million in the same period of 2023, which is a negative variance of $200,000.

Marc Seelenfreund: The decreased gross margin was again primarily due to a one-time heavily discounted transaction that was sold internationally to a reseller which we believe will help our revenue in the second half of 2024. Finally, the gross margin percentage was 25% in 2024 compared to 28.8% in the same period of 2023, a decrease of 3.8%.

Marc Seelenfreund: Demand from our wireless carriers and distributors remains strong. Have we currently have an order backlog of over $7 million, giving us strong visibility into the third and fourth quarters?

Marc Seelenfreund: Turning to significant business highlights, we are pleased to report that in addition to our strong backlog and our improved stock positions, with four North American carriers, we now have our ST7 hands that integrated with another leading global push-to-talk application, called ZELLO, and we expect more applications to be announced in the future.

Marc Seelenfreund: We expect revenue in Q3 2024 will be significantly higher than Q2 2024 revenue, and our goal for 2024 revenue is to have high double-digit growth.

Marc Seelenfreund: This integration has already led to meaningful sales, with multiple new sales opportunities in the works.

Marc Seelenfreund: As we scale our business aggressively, our order backlog may likely be inconsistent and perhaps lumpy at times due to the purchasing behavior of our customers.

Marc Seelenfreund: Also of note, we are in discussions with our business partners about new product launches, which we expect to announce in the coming months and will have a significant positive impact in our revenue in 2025 and beyond.

Marc Seelenfreund: Therefore, we do not intend to disclose our backlog quarter to quarter.

Marc Seelenfreund: We recently expanded our sales team with the hiring of Boba Scale as our VP of Public Safety. Bob previously served as the director of product development at Samson's Mission Critical, Push the Talk team. In the brief time that Bob has been at Siyata, he has already helped us to sharpen our product strategy and develop new sales opportunities. We are excited to have a person of his caliber on our team. We are just beginning to see the rapid adoption of our disruptive solutions and as an displacement of landmobile radio by Push the Talk of a Cellular continues to progress, this should drive meaningful growth for our innovative products. We stand by our previously stated goal of strong radio growth with the goal of profitability in the coming quarters.

Marc L. Seelenfreund: Having said that, we are extremely excited with our sales for the remaining half of 2024, as we are now seeing tangible rapid adoption of our unique PTT product portfolio across our various sales channels, with our North American wireless carrier partners, we are currently in a SD7 stock position with AT&T, Verizon, U.S, cellular, and Bill Mobility in Canada.

Marc Seelenfreund: And we also continue to sell in a non-stock position at T-Mobile.

Marc Seelenfreund: Just as important, our sales reach beyond emergency services to include school safety, healthcare, utilities, hospitality, and enterprise use cases among others.

Marc Seelenfreund: Therefore, we remain optimistic that 2024 will be a strong sales growth year for Siyata compared to 2023.

Marc Seelenfreund: We will file our second quarter 2024 financial results with the SEC on Form 6K and urge our listeners to access them from the SEC's website, Search for Siyata Mobile. That concludes our remarks. If you have any questions, please email them to syta at haydenir.com. Thank you. This concludes today's conference and you may disconnect your lines at this time. Thank you for your…

Marc Seelenfreund: For the remaining Q2-2024 financial metrics, Gross Margin percentage for Q2-2024 was 10.4% versus 29.7% in Q2-2023. Gross margin dollars decreased from $800,000 to $200,000, a $600,000 negative variance. The decrease in Gross margin was primarily due to one time heavily discounted transaction with an international reseller, which we believe will help our revenue in the second half of 2024.

Marc Seelenfreund: Adjusted EBITDA for Q2-2024 was negative $3.8 million compared to negative $2 million in Q2-2023, a $1.8 million negative variance in EBITDA.

Marc Seelenfreund: Working capital as a June 30, 2024 was negative $8.3 million versus $1.3 million as a December 31, 2023, a $7 million decrease in working capital. Removing both the non-cash warrant and preferred share liabilities classified as current liabilities, the working capital of June 30, 2024, would have been $2.5 million and at December 31, 2024 would have been $1.5 million.

Marc Seelenfreund: For the six months ended June 30, 2024, total revenue was $4.2 million compared to $4.5 million in the same period of 2023, which is a negative variance of $300,000. Gross margin dollars were $1.1 million in 2024 compared to $1.3 million in the same period of 2023, which is a negative variance of $200,000. The decreased gross margin was again primarily due to a one-time heavily discounted transaction that was sold internationally to a reseller which we believe will help our revenue in the second half of 2024. Finally, the gross margin percentage was 25% in 2024 compared to 28.8% in the same period of 2023, a decrease of 3.8%.

Marc Seelenfreund: We are excited to have a person of his caliber on our team.

Marc Seelenfreund: We are just beginning to see the rapid adoption of our disruptive solutions and as an displacement of landmobile radio by Push the Talk of a Cellular continues to progress, this should drive meaningful growth for our innovative products.

Marc Seelenfreund: We stand by our previously stated goal of strong radio growth with the goal of profitability in the coming quarters.

Marc Seelenfreund: We will file our second quarter 2024 financial results with the SEC on Form 6K and urge our listeners to access them from the SEC's website, Search for Siyata Mobile.

Marc Seelenfreund: That concludes our remarks.

Marc Seelenfreund: If you have any questions, please email them to syta at haydenir.com.

Marc Seelenfreund: Thank you.

Unknown Attendee: This concludes today's conference and you may disconnect your lines at this time.

Unknown Attendee: Thank you for your…

Q2 2024 Siyata Mobile Inc Earnings Call

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